Australia’s dollar fell ahead of Dec. 18 testimony from its central bank chief and a decision by the U.S. Federal Reserve on trimming stimulus.
The Aussie dropped last week after Reserve Bank of Australia Governor Glenn Stevens marked out 85 U.S. cents as a level he’d prefer for the currency. Minutes of the RBA’s last policy meeting are due tomorrow. New Zealand’s currency gained versus Australia’s as a gauge of consumer confidence in the smaller nation rose to the highest level since 2009.
“We could see some consolidation in the Aussie going into the Stevens testimony and the Fed meeting,” said Kara Ordway, a currency strategist at City Index Group Ltd. in Sydney. “In terms of risk appetite against the U.S. dollar, if you were going to look at any currency to make some gains, you would really pick the Aussie because it has been so weak compared to all the other majors. It all depends on Fed.”
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